Definition: A stakeholder analysis is when an assessment is undertaken of all the individuals or groups that will have an impact on the success of the product or will be affected by it. Normally, this assessment will be conducted before an initiative or project is started.
The stakeholders may be subject to different types of analysis: this corresponds with how they interact with the product or the project, or whether they fall into upstream or downstream categories. Stakeholder analysis might be carried out by project managers, program managers, or product managers.
The stakeholder analysis itself is strategic in nature and has a number of uses. Firstly, it can be utilized to recruit the assistance of important individuals. These people might have valuable knowledge or wisdom or even access to useful resources. Prioritizing these key stakeholders early on in the project boosts the possibility of garnering their support and conducting analysis beforehand makes it possible to identify them. Prioritizing these key stakeholders early on in the project boosts the possibility of garnering their support and conducting analysis beforehand makes it possible to identify them.
Using stakeholder analysis to identify key stakeholders who can drive the project forward, it is possible to effectively coordinate each party’s participation to collaborate toward the project’s strategic objectives. In turn, the development of both planning and scheduling is made more achievable.
An effective analysis should also be able to anticipate any concerns, issues, disputes, or disagreements before the project is in full swing. It can prove to be crippling to an initiative should a pivotal stakeholder, such as an investor, lose sight of the strategic value of the product after the project has passed a development threshold.
A competent stakeholder analysis can establish the roles of different influencers, their impacts, and any vulnerabilities. Moreover, such an analysis could also be presented to an influential participant in early-stage planning and services to quell any misgivings they might have later had.